Safety Insurance: Improving Combined Ratio Makes Story Appealing Again (Rating Upgrade)

Safety Insurance Group delivered strong 2025 results, with net income of $99.3M and EPS of $6.72, driven by robust premium growth and investment income. SAFT improved its combined ratio to 99% from 101.1% in 2024, signaling strengthening underwriting discipline and enhanced earnings potential. The dividend is well covered by earnings, with a current annualized payout of $3.68 and a low payout ratio supporting tangible book value growth.